What is account current or PLA in Idt?
Also how is different from paying CCR or reversal of CCR?
Please explain and distingush
5 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 07 September 2012
PLA means Personal Ledger Account. The manufacturer makes deposits with the excise authorities by depositing the amount in the treasury. The amount deposited is shown as PLA in the B/S. When the Cenvat credit falls short for payment of excise duty or there is no Cenvat Credit available, then the amount from the PLA is utilized for making the payment towards excise duty.
In short it is type of advance made by the manufacturer with teh excise authorities to make payment towards excise duty.
What do you mean by CCR? is it Cenvat Credit?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 07 September 2012
The manufacturer makes deposits with the excise authorities by depositing the amount in the treasury. The amount deposited is shown as PLA in the B/S. When the Cenvat credit falls short for payment of excise duty or there is no Cenvat Credit available, then the amount from the PLA is utilized for making the payment towards excise duty.
In short it is type of advance made by the manufacturer with teh excise authorities to make payment towards excise duty.
What do you mean by CCR? is it Cenvat Credit?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 07 September 2012
There are two types of duty balance in accounts for excise and service tax.
1) PLA or personal Ledger account in which we keep balance of cash deposited in advance through GAR-7, and debit at clearance, this is called current account also, this account can be used for all types of clearances and payment of interest / penalty also.
2) Credit account or RG23A-Part2 ( RG23C-part2 for capital goods), in which we take credit of duty paid on our inputs, and service tax on input services, this account can be used for output tax of 1) exisable goods, 2) taxable service
Anshul
(CA)
(98 Points)
Replied 07 September 2012
| Originally posted by : Giridhar S Karandikar | ||
 |
PLA means Personal Ledger Account. The manufacturer makes deposits with the excise authorities by depositing the amount in the treasury. The amount deposited is shown as PLA in the B/S. When the Cenvat credit falls short for payment of excise duty or there is no Cenvat Credit available, then the amount from the PLA is utilized for making the payment towards excise duty. In short it is type of advance made by the manufacturer with teh excise authorities to make payment towards excise duty. What do you mean by CCR? is it Cenvat Credit? |
 |
yes,it is cenvat credit
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 07 September 2012
CCR = cenvat credit means the amount accumulated in books from excise contents from purchase of inputs / capital goods
when the amount is used for payment of excise on clearance of taxable goods , its utilization or paying,
when the assesee remove any input from factory of manufacture on as it is condition then he has to reverse the credit account to the extent of the input credit taken at the time of entry of input in factory of manufacture.
the removal may be "return to supplier"/ sent for job work and not returned within 1 year
another incident is of reversal appears when the manufacturer destruct the scrap of own factory, without clearance it through RG1, then he has to reverse the duty contents of inputs contained in the scrap so destructed.
reversal means roll back of credit entry which was taken prior to reversal !!
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